Arca Firm CEO Believes Crypto Winter Has Reached The End, How True Is That?2 min read
In 2018, the cryptocurrency world experienced a crypto winter that saw the value of assets fall below 70-95% of their original value. This period lasted from January 2018 to December 2020.
Currently, the crypto market is experiencing another chilly winter with its devastating effects felt on the top market player – Bitcoin.
Despite the adoption and market dominance enjoyed by BTC: it still felt the crippling power of the bearish market cycle. Various predictions and speculations by experts relying on past market cycles are all over the place.
With the last crypto winter lasting almost three years: investors and traders are puzzled about the length of this current bearish market trend.
The crypto world is affected by the devastating effects of global players on the political scene. The Russia – Ukraine conflict has increased the pressure on cryptocurrency globally.
Igor Zakharov, CEO of DBX digital ecosystem: notes that high inflation has spiked interest rates in the United States. The U.S is the biggest promoter of crypto and a dominant force.
Shift Of BTC Holdings By Whales And Big players
Data obtained from Coinbase Pro shows that the big institutional players have transferred large amounts of their BTC holdings. The BTC volume pegged at 48,000 BTC is worth roughly $940 million.
These bitcoin assets; were removed from long-term holding positions with a time frame of three to five years. Surprisingly, the smaller and medium addresses have increased their BTC holdings: according to Santiment.
From recent data, BTC addresses with holdings in the range of 0.1 to 10 BTC now hold a record-breaking 15.9% of BTC’s total circulating supply.
BTC price has been in constant flux. With its recent price struggles around the $20,000 range noted. It has left experts puzzled about the actual length of the crypto winter.
Light At The End For Crypto
But amid the uncertainty, Rayne Steinberg, CEO of digital assets investment firm Arca, is quite optimistic. He expressed his thoughts that the market is generally closer to the end of this dark period. However, he pointed out that macroeconomic factors made it difficult to go into specifics.
With macroeconomic factors like inflation taking center stage worldwide, Steinberg opted to water down false hopes but encouraged optimism.
Due to Bitcoin’s current connection with S&P 500, BTC price has taken a beating since the general market drawdown. This bitcoin sync with the equity market might favor the bears.
Some experts’ predictions had the price of bitcoin nosediving by as much as 20% as its relationship with the S&P 500 continues. Relatively other altcoins are also experiencing the chilling effects of the dip.
Uncertainty has now taken root in the crypto world. Forecasts and past price data are speculative as the big players gear up to weather the storm.
Featured Image From Pixabay, Charts From Tradingview